How efforts on research and innovation contribute to economic development and integration into the European Union Peter Polajnar European Commission DG Enlargement Keynote speech
Research in accession negotiations Days to close CH25: Science and research Croatia 251 days Montenegro 173 days 2
Growth 1993-2010 Innovation fueled growth Text text text Text, text Text, text Text, Text 3
The end of convergence 4
Research and innovation reality AL 3.3 3.5 3.4 3.5 3.3 : * Gross domestic expenditure on R&D in% of GDP : : : : : : Percentage of households who have Internet access at home (%) : 3.4 : : : : BA : : : : : : * Gross domestic expenditure on R&D in% of GDP : : : : : : Percentage of households who have Internet access at home (%) : : : : : : XK* : : : : : : * Gross domestic expenditure on R&D in% of GDP : : : : : : Percentage of households who have Internet access at home (%) : : : : : : MK* 3.6 3.3 3.6 3.7 : : * Gross domestic expenditure on R&D in% of GDP 0.3 0.2 0.2 0.2 : : Percentage of households who have Internet access at home (%) : 29.0e 42.0e 46.0 55.0 58.3 ME : : : : : : * Gross domestic expenditure on R&D in% of GDP 0.7 1.2 1.1 : 0.4 : Percentage of households who have Internet access at home (%) : : : : 51.4 55.0 RS 3.2 4.9 5.0 4.9 4.8 : * Gross domestic expenditure on R&D in% of GDP : 0.4 0.9 0.8 0.8 : Percentage of households who have Internet access at home (%) : 33.2 37.0 39.0 41.2 47.5 5
Greater political & economic context Politics of enlargement Firm political but weaker public support Process more rigourous and longer Weak rule of law: withour serious political and judical reform, all public policies inefficient Economics of enlargement Countries poorer Unemployment on average above 22% Narrow productive base Low investment rate, "problematic" FDI structure, large external imbalances 6
New reality in the accession process During the eurozone crisis, the EU has changed new coordination mechanisms, new rules (e.g. European semester) None of the Western Balkan countires is a functiong market economy (1st economic accesion criterion) None is considered to have the capacity to compete in the Single market (2nd economic accession criterion) 7
Architecture of economic governance Draft Bilateral economic dialogue Mulilateral Bilateral Multilateral economic dialogue SEE 2020 Competitiveness and growth programmes Macroeconomic and Fiscal - Pre-Accession Economic Programmes (PEP/EFP) Joint targets January Employment and Social Reform Assessment in SAA subcommittees on Economic and financial issues; Trade, Industry; Internal Market, Competition; Innovation, Social Commission assessment PEPs/EFPs of Joint EC - country assessment of needs National Inputs Country programmes Economic and Financial Expert Groups Annual monitoring Annual monitoring Spring Annual Progress report: guidance on how to meet the economic criteria Joint ECOFIN conclusions country specific recommendations Autumn Technical Assistance Assistance IMF, WORLD BANK, OECD, ECB Technical Assistance 8
Other positive spillovers on research policy Ch8: Competition/State aid Ch5: Public procurement Ch10: Information Society Ch23-24: Judiciary&rule of law Ch20: Enteprise and industrial policy Ch25: Science and reserach Ch26: Education and culture COSME HORIZON 2020 ERASMUS + 9
Reformed research policy Track record of credible reforms Investemnt in the sector and prevention of brain drain Responsible and not politicised managment of funds Convergence 10
Thank You For Your Attention! Peter Polajnar European Commission DG Enlargement